Providing a suite of services and independent due diligence for asset-backed digital offerings
At STO Rating, we strive to assist innovative companies in navigating the Security Token ecosystem. Through our partners, we provide a range of services to help you on your journey.
Independent third-party research and due diligence reports prepared by business analysts.
Assistance in company incorporation and legal secretarial services for STO friendly jurisdictions.
Preparation of all legal material including offerings documents, compliance and regulatory submissions.
Assistance with KYC and AML processing as required by law specific to company jurisdiction.
We utilize an experienced Solidity team for reviews and auditing of ERC20 smart contracts.
Preparation of investor-focused whitepapers, pitch decks and information memorandums.
The STO ecosystem is in its infancy. We highlight certain considerations for those seeking to issue a security token for their company.
Launching of a Security Token Offering (STO) requires a significant amount of preparation relating to legal jurisdiction and where the company is domiciled. At this point in time, the ecosystem is still extremely fragmented as laws spanning different geographies differ extremely. While some jurisdictions are progressive to tokenization of securities, others such as China have outright banned them.
Before commencing the process of a Security Token Offering, it is imperative that you gain credible advice from lawyers and accountants that can inform you of the potential implications relating to directors liability and taxation.
STO’s differ substantially from the legal subscription process of Initial Coin Offerings (ICO’s). While ICO’s were based on an offering of ‘utility’, STO’s are asset backed and as such would be considered a ‘security’.
The legal process for raising funding through this channel can be more restrictive as there is generally a requirement that capital can only be raised from what is deemed as an ‘accredited’ or ‘sophisticated’ investor. In this instance, the corresponding offer documents must be tailored for the for this market and would require a heavier process relating to KYC, AML and investor verification.
Should you require a consultation relating to the process, feel free to contact the team.
While pitch decks and marketing have been a common method of raising funding for cryptocurrencies, STO’s require substantially more information to be presented relating to financial activities, value models and forecast returns.
By preparing non-biased research, STO Rating allows new ventures to showcase an independent third-party analysis of the business and its operations. Such reports cover a range of aspects including financial modeling, commercial strategy, technical roadmaps and related personnel evaluation.
STO Rating research is provided on a mandated basis. Talk to the team for more information.
Gathering complete AML and KYC documentation from all prospective investors is critical to the success of a Security Token Offering. Verification has to be completed to ensure that the investor base is not contaminated with ‘questionable’ money or crypto assets.
Furthermore, exchanges that launch the ability to trade Security Tokens will require the highest of KYC standards to onboard new tokens.
STO Rating can assist with some of its exclusive providers for the KYC and AML process.
We combine business and financial analysts with smart contract developers for institutional grade research.